A group of local fuel transporters have written to the Director of Energy requesting that the country’s fuel prices be reduced further.
Last month, Botswana Energy Regulatory Authority (BERA) announced fuel adjustments of retail prices for petrol, diesel and illuminating paraffin.
The eagerly anticipated drop in fuel prices turned out to be a 13 thebe per litre decrease for petrol and 10 thebe for diesel.
The minimal adjustment means the price of petrol in Botswana is now P9.30 whilst diesel trades at P9.40 to the litre.
Paraffin prices meanwhile, were cut by 20 thebe per litre.
However, many felt this was a mere ‘drop in the ocean’ especially with global oil prices trading at an all time low – a scenario experts expect to continue for much of the year.
Numerous countries, including South Africa, reacted by cutting fuel prices by some of the biggest margins in their history.
Local fuel transporters are frustrated that Botswana has not followed suit and feel they are thus at a disadvantage.
Last Monday, Directors of the companies, Seema Tankers, Olspa Logistics, Dynamic Road Services, Crossroads and Sky Bridge Logistics wrote to the Director of Energy requesting that the Department look into the current local prices.
Although Rebaone Seema, Managing Director of Seema Tankers, acknowledges their request is a long shot, he says they remain hopeful the matter will be carefully considered.
Seema told Voice Money the market needs to be stabilised as currently foreign-owned companies are benefitting from the lower fuel prices in their regions.
In their letter, the companies’ Directors urged the Department to consider an aggressive and urgent downward review of petroleum prices.
“End consumers in industrial services, construction services, mining, commercial services have access to markets that have drastically reduced prices and do procure directly from outside, that is from South Africa, Namibia and Mozambique,” reads the letter.
They feel this has created a bypass to the local market which also affects Botswana.
With fuel now cheaper in other countries in the region, Seema and his colleagues say truck drivers opt to capitalize on friendly prices from countries of origin.
It is said that they refuel at the last exit point before entering Botswana but still transit through the country, creating a huge loss to the local market.
This, the local transporters argue, leaves their clients with no choice but to deviate from citizen economic empowerment and source services where transport rates have dropped due to the low operational expenditure on road transport operations of which fuel accounts for between 60 – 70 percent of the costs.
The letter was hand-delivered to the Department of Energy last Monday but at the time of going to press, Seema says they were yet to receive a response.
Meanwhile, Deputy Director in the Department of Energy, Baruti Regoeng told Voice Money he had received a copy of the letter but has not had time to look at it in depth.
